The Australian share market has made some solid gains as the prospect of an interest rate hike in the US in September was pared back following some weaker-than-expected US jobs figures on Friday night.
IG market analyst Angus Nicholson said the heavyweight resources and banking sectors had lifted the local bourse.
“It’s macro factors in play today driving the index,” Mr Nicholson said.
“That’s very much the reaction to Friday’s US non-farm payrolls report, a slightly weaker US dollar, a stronger Aussie dollar and a bounce in commodities – that’s really been the key factor behind the gains in materials stocks today.”
On Friday, stocks on Wall Street lifted as the weaker-than-expected non-farm payrolls figures dampened expectations for the US Federal Reserve to lift interest rates in September.
On the Australian share market on Monday, in the energy sector, oil and gas producer Woodside Petroleum was up 43 cents at $28.51.
Woodside has agreed to buy half of BHP Billiton’s stake in the Scarborough area gas fields off the Western Australia coast, as it continues to expand its portfolio amid a prolonged slump in energy prices.
Santos gained 13 cents to $4.43.
Global miner BHP Billiton rose 49 cents to $20.34, Rio Tinto ascended 69 cents to $48.10, and Fortescue Metals climbed 18 cents to $5.02.
Among the major banks, Commonwealth Bank added $1.40 to $72.31, National Australia Bank improved 48 cents to $27.62, ANZ advanced 41 cents to $27.25, and Westpac strengthened 50 cents to $29.67.
Among other stocks, Telstra firmed three cents to $5.15 on a day the telco giant warned an ACCC inquiry into regulation of mobile roaming prices could hurt regional network investment.
The competition watchdog announced an inquiry into possible regulation of prices for access to roaming networks.
Supermarket operator Woolworths was seven cents richer at $24.05. Woolworths has pressed on with cutting ties with Masters, confirming it has replaced its directors on the failed hardware chain’s board with staff from insolvency firm KordaMentha.
KEY FACTS:
* At 1628 AEST on Monday, the benchmark S&P/ASX 200 index was up 56.8 points, or 1.06 per cent, at 5,429.6 points.
* The broader All Ordinaries index was up 53.8 points, or 0.98 per cent, at 5,524.4 points.
* The September share price index futures contract was up 70 points at 5,418 points, with 26,697 contracts traded.
* National turnover was 2.25 billion securities traded, worth $4.97 billion.
